“trade” includes every profession, trade, business, employment, calling, occupation or venture, including the letting of any property and the use of or the grant of permission to use any patent as defined in the Patents Act or any design as defined in the Designs Act or any trade mark as defined in the Trade Marks Act or any copyright as defined in the Copyright Act or any other property which is of a similar nature;
Category: Definitions – ITA
“Trading stock” definition of section 1 of ITA
“trading stock” includes –
(a) includes-
(i) anything produced, manufactured, constructed, assembled, purchased or in any other manner acquired by a taxpayer for the purposes of manufacture, sale or exchange by the taxpayer or on behalf of the taxpayer;
(ii) anything the proceeds from the disposal of which forms or will form part of the taxpayer’s gross income, otherwise than-
(aa) in terms of paragraph (j) or (m) of the definition of ‘gross income’;
(bb) in terms of paragraph 14(1) of the First Schedule; or
(cc) as a recovery or recoupment contemplated in section 8(4) which is included in gross income in terms of paragraph (n) of the definition of ‘gross income’; or
(iii) any consumable stores and spare parts acquired by the taxpayer to be used or consumed in the course of the taxpayer’s trade; but
(b) does not include-
(i) a foreign currency option contract ;or
(ii) a forward exchange contract,
as defined in section 24I(1);
“Trading stock” definition of section 41 of ITA
“trading stock” for purposes of sections 42, 44, 45 and 47, includes any livestock or produce contemplated in the First Schedule and any reference to an amount taken into account in respect of an asset in terms of section 11(a) or 22(1) or (2) shall, in the case of such livestock or produce, be construed as a reference to the amount taken into account in respect thereof in terms of paragraph 5(1) or 9 of the First Schedule, as the case may be;
[Definition of “trading stock” inserted by section 49 of Act 45 of 2003, substituted by section 52 of Act 35 of 2007, amended by section 61 of Act 7 of 2010 and substituted by section 54 of Act 43 of 2014 effective on 20 January 2015]
“Transaction date” definition of section 24I of ITA
“transaction date” means, in relation to –
(a) ……….
(b) a debt owing by a person, the date on which such debt was actually incurred;
(bA) a preference share, the date on which the preference share was issued or acquired;
[Paragraph (bA) inserted by section 22(1)(e) of Act 5 of 2026 deemed effective on 1 January, 2025 and applicable in respect of years of assessment commencing on or after that date]
(c) ……….
(d) a debt owing to a person, the date on which the amount payable in respect of such debt accrued to such person or the date on which such debt was acquired by such person in any other manner;
(e) a forward exchange contract, the date on which such contract was entered into;
(f) a foreign currency option contract, the date on which such contract was entered into or acquired; and
(g) an amount which constitutes a unit of currency, the date on which that amount was acquired;
“Transfer price” definition of section 24J of ITA
“transfer price”, in relation to the transfer of an instrument, means the market value of the consideration payable or receivable, as the case may be, for the transfer of such instrument as determined on the date on which that instrument is transferred;
“Transfer” definition of section 24J of ITA
“transfer”, in relation to an instrument, includes –
(a) the transfer, sale, assignment or disposal in any other manner of such instrument by the holder or issuer thereof, as the case may be; or
(b) the acquisition of such instrument by the holder or issuer thereof, as the case may be, by way of a transfer, sale, assignment or disposal in any other manner,
but does not include the redemption of such instrument;
“Translate” definition of section 24I of ITA
“translate” means the restatement of an exchange item in the local currency at the end of any year of assessment, by applying the ruling exchange rate to such exchange item.
“Trust” definition of section 1 of ITA
“trust” means any trust fund consisting of cash or other assets which are administered and controlled by a person acting in a fiduciary capacity, where such person is appointed under a deed of trust or by agreement or under the will of a deceased person, and includes a portfolio of a collective investment scheme and a portfolio of a hedge fund collective investment scheme;
[Definition of “trust” inserted by section 2(i) of Act 141 of 1992 and substituted by section 1(1)(k) of Act 42 of 2024]
“Trustee” definition of section 1 of ITA
“trustee”, in addition to every person appointed or constituted as such by act of parties, by will, by order or declaration of court or by operation of law, includes an executor or administrator, tutor or curator, and any person having the administration or control of any property subject to a trust, usufruct, fideicommissum or other limited interest or acting in any fiduciary capacity or having, either in a private or in an official capacity, the possession, direction, control or management of any property of any person under legal disability;
“Unbundling transaction” definition of section 46 of ITA
(1) For the purposes of this section, ‘unbundling transaction’ means any transaction-
(a)
(i) in terms of which the equity shares in a company (hereinafter referred to as the ‘unbundled company’), which is a resident that are held by a company (hereinafter referred to as the ‘unbundling company’) , which is a resident, are all distributed by that unbundling company to any shareholder of that unbundling company in accordance with the effective interest of the shareholders in the shares of that unbundling company, and if-
(aa) all of the equity shares of the unbundled company are listed shares or will become listed shares within 12 months after that distribution;
(bb) that shareholder to which that distribution is made by that unbundling company forms part of the same group of companies as that unbundling company; or
(cc) that distribution is made pursuant to an order in terms of the Competition Act, 1998 (Act No. 89 of 1998), made by the Competition Tribunal or the Competition Appeal Court;
(ii) if the equity shares distributed as contemplated in subparagraph (i) constitute-
(aa) where that unbundled company is a listed company immediately before that distribution-
(A) and no shareholder of the unbundled company other than the unbundling company holds the same number of equity shares as or more equity shares than the unbundling company of that unbundled company, more than 25 per cent of the equity shares of the unbundled company; or
(B) and any shareholder of the unbundled company other than the unbundling company holds the same number of equity shares as or more equity shares than the unbundling company of that unbundled company, at least 35 per cent of the equity shares of that unbundled company; or
(bb) where that unbundled company is an unlisted company immediately before that distribution, more than 50 per cent of the equity shares of that unbundled company; or
(b)
(i) in terms of which all the equity shares in an unbundled company which is a foreign company that are held by an unbundling company which is a resident or a controlled foreign company are all distributed by that unbundling company to any shareholder of that unbundling company in accordance with the effective interest of that shareholder in the shares of that unbundling company –
(aa) if that shareholder is a resident and that shareholder forms part of the same group of companies (as defined in section 1); or
(bb) if that shareholder is not a resident and that shareholder is a controlled foreign company in relation to any resident that forms part of the same group of companies (as defined in section 1),
as that unbundling company; and
[Subparagraph (i) substituted by section 95(1)(b) of Act 31 of 2013 and amended by section 37(1)(a) of Act 17 of 2023]
(ii) if, immediately before the distribution of the equity shares of an unbundled company by an unbundling company to any shareholder of that unbundling company as contemplated in subparagraph (i)-
(aa) the unbundling company holds more than 50 per cent of the equity shares of the unbundled company; and
(bb) each of those equity shares of that unbundled company are held by the unbundling company as a capital asset.